Bulgaria's Real Estate Market in 2025: Price Stabilization Amid Growing Activity

In 2025, Bulgaria’s housing market shows signs of stabilization. While housing prices have slowed their upward trend, the number of real estate transactions continues to grow. Experts also highlight a decline in new construction activity and inflated rental prices, according to Novinite. No major shifts are expected due to the country’s transition to the euro.

Modest Price Increases & Divergence in Affordability

According to Dobromir Ganev of the National Real Estate Association, prices increased by just 5–8% in Q1 2025—considered a moderate rise. However, the gap between large and small cities continues to widen. In Bulgaria’s four largest municipalities, housing affordability dropped by around 20% over the past six months. In contrast, smaller cities like Gabrovo and Silistra reported more positive trends.

Mortgage Growth and Secondary Market Dynamics

Mortgage lending in Sofia surged by 46% in 2024, with over 60% of properties purchased through loans. Still, private owners in the secondary market remain inactive, hoping for better selling opportunities. Some of this housing may return to the market, but analysts do not foresee a major or lasting price correction, given Sofia’s competitive environment and growing transaction volume—likely driven by regional economic disparities and internal migration.

New Construction Slows, Rental Market Overpriced

Developers have taken a more cautious approach, with new construction volume in Sofia dropping 60% compared to Q1 2024. The rental segment shows clear signs of imbalance: asking prices are frequently inflated, and finding well-maintained properties at reasonable prices—especially for short-term rentals—is becoming more difficult.

Ganev also pointed out that reliable data on rental transactions is virtually nonexistent, as these deals are often excluded from national statistics. This data gap makes market regulation and analysis difficult.

Eurozone Transition: Low Impact Expected

The upcoming euro adoption is widely discussed in the media, but experts don’t foresee drastic consequences. Ivan Velkov, chairman of the Bulgarian Property Management Association, noted that Bulgaria has over 4.3 million housing units, and many residents own multiple properties.

A recent energy renovation study found that in many apartment buildings in Sofia, only 6–8% of units are occupied—indicating high vacancy rates and a market where sellers outnumber buyers. This situation provides a degree of market resilience and suggests that Bulgaria’s housing market operates according to its internal dynamics rather than reacting sharply to currency changes.